Explanation
Enter principal, annual rate, and years. The calculator applies standard amortization to return monthly payment, total payment, and total interest.
Loan Calculator
Use this loan calculator to estimate monthly payments for fixed-rate loans.
Formula
M = P x [r(1 + r)^n] / [(1 + r)^n - 1]
Enter principal, annual rate, and years. The calculator applies standard amortization to return monthly payment, total payment, and total interest.
- M: Monthly payment
- P: Principal
- r: Monthly interest rate
- n: Number of monthly payments
Example
Principal: $20,000, Rate: 8%, Term: 5 years
- r = 0.08 / 12 = 0.006667
- n = 5 x 12 = 60
- Substitute into amortization formula
Monthly payment is about $405.53.